§3174-T. Cub Care program

(REALLOCATED FROM TITLE 22, SECTION 3174-R)

1.Program established.
The Cub Care program is established to provide health coverage for low-income children
who are ineligible for benefits under the Medicaid program and who meet the requirements
of subsection 2. The purpose of the Cub Care program is to provide health coverage
to as many children as possible within the fiscal constraints of the program budget
and without forfeiting any federal funding that is available to the State for the
State Children's Health Insurance Program through the federal Balanced Budget Act
of 1997, Public Law 105-33, 111 Stat. 251, referred to in this section as the Balanced
Budget Act of 1997.

[
RR 1997, c. 2, §46 (RAL)
.]

2.Eligibility; enrollment.
Health coverage under the Cub Care program is available to children under 19 years
of age whose family income is above the eligibility level for Medicaid under section
3174-G and below the maximum eligibility level established under paragraphs A and
B, who meet the requirements set forth in paragraph C and for whom premiums are paid
under subsection 5.

B. If the commissioner has determined the fiscal status of the Cub Care program under
subsection 8 and has determined that an adjustment in the maximum eligibility level
is required under this paragraph, the commissioner shall adjust the maximum eligibility
level in accordance with the requirements of this paragraph.

(1) The adjustment must accomplish the purposes of the Cub Care program set forth
in subsection 1.

(2) If Cub Care program expenditures are reasonably anticipated to exceed the program
budget, the commissioner shall lower the maximum eligibility level set in paragraph
A to the extent necessary to bring the program within the program budget.

(3) If Cub Care program expenditures are reasonably anticipated to fall below the
program budget, the commissioner shall raise the maximum eligibility level set in
paragraph A to the extent necessary to provide coverage to as many children as possible
within the fiscal constraints of the program budget.

(4) The commissioner shall give at least 30 days' notice of the proposed change
in maximum eligibility level to the joint standing committee of the Legislature having
jurisdiction over appropriations and financial affairs and the joint standing committee
of the Legislature having jurisdiction over health and human services matters. [RR 1997, c. 2, §46 (RAL).]

C. All children resident in the State are eligible except a child who:

(1) Is eligible for coverage under the Medicaid program;

(2) Is covered under a group health insurance plan or under health insurance, as
defined in Section 2791 of the federal Public Health Service Act, 42 United States
Code, Section 300gg(c) (Supp. 1997);

(3) Is a member of a family that is eligible under Title 5, section 285 for health
coverage under the state employee health insurance program;

(4) Is an inmate in a public institution or a patient in an institution for mental
diseases; or

(5) Within the 3 months prior to application for coverage under the Cub Care program,
was insured or otherwise provided coverage under an employer-based health plan for
which the employer paid 50% or more of the cost for the child's coverage, except that
this subparagraph does not apply if:

(a) The cost to the employee of coverage for the family exceeds 10% of the family's
income;

(b) The parent lost coverage for the child because of a change in employment, termination
of coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, COBRA,
of the Employee Retirement Income Security Act of 1974, as amended, 29 United States
Code, Sections 1161 to 1168 (Supp. 1997) or termination for a reason not in the control
of the employee; or

D. Notwithstanding changes in the maximum eligibility level determined under paragraph
B, the following requirements apply to enrollment and eligibility:

(1) Children must be enrolled for 12-month enrollment periods. Prior to the end
of each 12-month enrollment period the department shall redetermine eligibility for
continuing coverage; and

(2) Children of higher family income may not be covered unless children of lower
family income are also covered. This subparagraph may not be applied to disqualify
a child during the 12-month enrollment period. Children of higher income may be disqualified
at the end of the 12-month enrollment period if the commissioner has lowered the maximum
eligibility level under paragraph B. [2001, c. 450, Pt. A, §3 (AMD).]

E. Coverage under the Cub Care program may be purchased for children described in subparagraphs
(1) and (2) for a period of up to 18 months as provided in this paragraph at a premium
level that is revenue neutral and that covers the cost of the benefit and a contribution
toward administrative costs no greater than the maximum level allowable under COBRA.
The department shall adopt rules to implement this paragraph. The following children
are eligible to enroll under this paragraph:

(1) A child who is enrolled under paragraph A or B and whose family income at the
end of the child's 12-month enrollment term exceeds the maximum allowable income set
in that paragraph; and

(2) A child who is enrolled in the Medicaid program and whose family income exceeds
the limits of that program. The department shall terminate Medicaid coverage for
a child who enrolls in the Cub Care program under this subparagraph. [2001, c. 450, Pt. A, §3 (AMD).]

[
2001, c. 450, Pt. A, §3 (AMD)
.]

3.Program administration; benefit design.
With the exception of premium payments under subsection 5 and any other requirements
imposed under this section, the Cub Care program must be integrated with the Medicaid
program and administered with it in one administrative structure within the department,
with the same enrollment and eligibility processes, benefit package and outreach and
in compliance with the same laws and policies as the Medicaid program, except when
those laws and policies are inconsistent with this section and the Balanced Budget
Act of 1997. The department shall adopt and promote a simplified eligibility form
and eligibility process.

[
RR 1997, c. 2, §46 (RAL)
.]

4.Benefit delivery.
The Cub Care program must use, but is not limited to, the same benefit delivery
system as the Medicaid program, providing benefits through the same health plans,
contracting process and providers. Copayments and deductibles may not be charged
for benefits provided under the program.

[
RR 1997, c. 2, §46 (RAL)
.]

5.Premium payments.
Premiums must be paid in accordance with this subsection.

A. Premiums must be paid at the beginning of each month for coverage for that month
according to the following scale:

(1) Families with incomes between 150% and 160% of the federal nonfarm income official
poverty line pay premiums of 5% of the benefit cost per child, but not more than 5%
of the cost for 2 children;

(2) Families with incomes between 160% and 170% of the federal nonfarm income official
poverty line pay premiums of 10% of the benefit cost per child, but not more than
10% of the cost for 2 children;

(3) Families with incomes between 170% and 185% of the federal nonfarm income official
poverty line must pay premiums of 15% of the benefit cost per child, but not more
than 15% of the cost for 2 children; and

(4) Families with incomes between 185% and 200% of the federal nonfarm income official
poverty line must pay premiums of 20% of the benefit cost per child, but not more
than 20% of the cost for 2 children. [2003, c. 673, Pt. TTT, §§3, 5 (AFF); 2003, c. 673, Pt. TTT, §1 (RPR).]

B. When a premium is not paid at the beginning of a month, the department shall give
notice of nonpayment at that time and again at the beginning of the 6th month of the
6-month enrollment period if the premium is still unpaid, and the department shall
provide an opportunity for a hearing and a grace period in which the premium may be
paid and no penalty will apply for the late payment. If a premium is not paid by
the end of the grace period, coverage must be terminated unless the department has
determined that waiver of premium is appropriate under paragraph D. The grace period
is determined according to this paragraph.

(1) If nonpayment is for the first, 2nd, 3rd, 4th or 5th month of the 6-month enrollment
period, the grace period is equal to the remainder of the 6-month enrollment period.

(2) If nonpayment is for the 6th month of the 6-month enrollment period, the grace
period is equal to 6 weeks. [RR 1997, c. 2, §46 (RAL).]

C. A child whose coverage under the Cub Care program has been terminated for nonpayment
of premium and who has received coverage for a month or longer without premium payment
may not reenroll until after a waiting period that equals the number of months of
coverage under the Cub Care program without premium payment, not to exceed 3 months. [RR 1997, c. 2, §46 (RAL).]

6.Incentives.
In the contracting process for the Cub Care program and the Medicaid program, the
department shall create incentives to reward health plans that contract with school-based
clinics, community health centers and other community-based programs.

[
RR 1997, c. 2, §46 (RAL)
.]

7.Administrative costs.
The department shall budget 2% of the costs of the Cub Care program for outreach
activities. After the first 6 months of the program and to the extent that the program
budget allows, the department may expend up to 3% of the program budget on activities
to increase access to health care. Administrative costs must include the cost of
staff with experience in health policy administration equal to one full-time equivalent
position.

[
RR 1997, c. 2, §46 (RAL)
.]

8.Quarterly determination of fiscal status; reports.
On a quarterly basis, the commissioner shall determine the fiscal status of the
Cub Care program, determine whether an adjustment in maximum eligibility level is
required under subsection 2, paragraph B and report to the joint standing committee
of the Legislature having jurisdiction over appropriations and financial affairs and
the joint standing committee of the Legislature having jurisdiction over health and
human services matters on the following matters:

A. Enrollment approvals, denials, terminations, reenrollments, levels and projections.
With regard to denials, the department shall gather data from a statistically significant
sample and provide information on the income levels of children who are denied eligibility
due to family income level; [RR 1997, c. 2, §46 (RAL).]

E. Any information the department has from the Cub Care program or from the Bureau of
Insurance or the Department of Labor on employer health coverage and insurance coverage
for low-income children; [RR 1997, c. 2, §46 (RAL).]

F. The use of and experience with the purchase option under subsection 2, paragraph
D; and [RR 1997, c. 2, §46 (RAL).]

G. Cub Care program administrative costs. [RR 1997, c. 2, §46 (RAL).]

[
RR 1997, c. 2, §46 (RAL)
.]

9.Provisions applicable to federally recognized Indian tribes.
After consultation with federally recognized Indian nations, tribes or bands of
Indians in the State, the commissioner shall adopt rules regarding eligibility and
participation of children who are members of a nation, tribe or band, consistent with
Title 30, section 6211, in order to best achieve the goal of providing access to health
care for all qualifying children within program requirements, while using all available
federal funds.

[
RR 1997, c. 2, §46 (RAL)
.]

10.Rulemaking.
The department shall adopt rules in accordance with Title 5, chapter 375 as required
to implement this section. Rules adopted pursuant to this subsection are routine
technical rules as defined by Title 5, chapter 375, subchapter II-A.

[
RR 1997, c. 2, §46 (RAL)
.]

11.Cub Care drug rebate program.
Effective October 1, 1999, the department shall enter into a drug rebate agreement
with each manufacturer of prescription drugs that results in a rebate equal to that
which would be achieved under the federal Social Security Act, Section 1927.

A. [1999, c. 522, §2 (AFF); 1999, c. 522, §1 (RP).]

[
2005, c. 683, Pt. A, §34 (AMD)
.]

12.Premium rate review; adjustment.
Effective July 1, 2004, the department shall periodically evaluate the amount of
premiums charged under this section to ensure that the premiums charged reflect the
most current benefit cost per child. The commissioner shall adjust the premiums by
rule. Rules adopted pursuant to this subsection are routine technical rules as defined
in Title 5, chapter 375, subchapter 2-A.